Enter the estimated values for assets, liabilities, and lifetime gifts. Only the amount exceeding the federal exemption is taxable.
The Estate Tax Calculator helps you estimate federal estate tax liability based on current IRS exemption amounts and progressive tax rates. It considers total assets, applicable debts, administrative expenses, charitable bequests, and lifetime taxable gifts to determine if your estate exceeds the unified credit exemption. This tool is essential for estate planning and understanding potential tax burdens on your heirs.
The federal estate tax is calculated on the taxable estate, which is the net value of all assets minus allowable deductions, plus any lifetime taxable gifts. Only the amount exceeding the annual exemption is taxed at a marginal rate (currently 40%).
Where:
• Gross Estate = Total value of all assets owned at death.
• Deductions = Debts, funeral expenses, administrative costs, charitable bequests, and state estate taxes.
• Lifetime Gifts = Cumulative taxable gifts above annual exclusions.
• Exemption = Unified credit exemption amount for the tax year (e.g., $15,000,000 for 2026).
• Tax Rate = Top marginal estate tax rate (40% under current law).
E = max(0, (A − L + G − X)) × R
Where E = Estate Tax Due, A = Total Assets, L = Total Liabilities/Deductions, G = Lifetime Taxable Gifts, X = Exemption Amount, R = Tax Rate (40%).
Scenario: A decedent in 2026 has an estate valued at $25,000,000 in total assets. Outstanding debts and administrative expenses total $3,000,000. There were $2,000,000 in lifetime taxable gifts (over annual exclusions).
Calculations:
The estate would owe approximately $3.6 million in federal estate taxes before any additional state-level taxes or marital deductions (if applicable).
💡 Tip: Proper estate planning — such as gifting strategies, charitable trusts, or marital transfers — can significantly reduce or eliminate estate tax liability.
Review how the federal estate tax exemption has changed over recent years (indexed for inflation).
| Year | Lifetime Exemption | Top Marginal Rate |
|---|---|---|
| 2018 | $11,180,000 | 40% |
| 2019 | $11,400,000 | 40% |
| 2020 | $11,580,000 | 40% |
| 2021 | $11,700,000 | 40% |
| 2022 | $12,060,000 | 40% |
| 2023 | $12,920,000 | 40% |
| 2024 | $13,610,000 | 40% |
| 2025 | $13,990,000 | 40% |
| 2026 | $15,000,000 (est.) | 40% |
*The Tax Cuts and Jobs Act of 2017 doubled exemptions for years 2018–2025. The 2026 exemption reflects the inflation-adjusted baseline.
• Using Trusts to Reduce Estate Tax – Learn about irrevocable life insurance trusts (ILITs) and credit shelter trusts.
• Annual Gift Tax Exclusion Explained – How to gift up to $19,000 per person annually tax-free.
• Portability of Exemption Between Spouses – Maximize combined exemptions using IRS portability election.
• Charitable Remainder Trusts (CRTs) – Reduce estate tax while supporting causes you care about.
Estate tax is paid by the estate before distribution. Inheritance tax is paid by heirs. The federal government only imposes an estate tax — no federal inheritance tax.
Assets left to a surviving spouse are generally exempt from federal estate tax, regardless of amount. This calculator assumes assets may pass to non-spouse heirs.
For 2026, the federal exemption is $15,000,000 with a 40% top marginal rate. Only the amount exceeding the exemption is taxed.
Lifetime taxable gifts reduce the available exemption dollar-for-dollar. This calculator accounts for that reduction.